Graph of aggregate demand and aggregate supply

Assignment Help Macroeconomics
Reference no: EM131326587

Assume the United States economy is currently operating at full employment

A. draw a correctly labeled graph of aggregate demand and aggregate supply and show each of the following.

I Long run Aggregate supply curve.

ii Current output and price level labelled Y1 and Y2 respectively.

B. Now assume the US governement institutes a new tariff on imported goods. On the graph drawn in part a show the effect of this new fiscal policy. label the new equilibrium output and price levels y2 and PL2 respectively.

C. Explain the short run effects of this policy on GDP equilibrium.

Reference no: EM131326587

Questions Cloud

Find the power content of the output process : Write the output process in terms of the in-phase and quadrature components, and find the power in each component. Assume f0 = 50 MHz.
Economics of labor markets assignment presentation : The Economics of Labor Markets assignment presentation to be presented to the CEO's executive committee that addresses how your chosen organization determines what quantity of labor to demand and what events could shift the demand and supply of th..
Determining the maturity transformation : 1.  In a recession, tax payments tend to increase and transfer payments tend to decrease.  T/F 2. By engaging in "maturity transformation" commercial banks transfer risk due to interest rate changes from themselves to the depositors. T/F
Determine the autocorrelation function : Determine the autocorrelation function of Y (t) in terms of the autocorrelation function of X(t).
Graph of aggregate demand and aggregate supply : Assume the United States economy is currently operating at full employment. A. draw a correctly labeled graph of aggregate demand and aggregate supply and show each of the following.
How much cash is available before tax from sale : What are the capital account balances for A and B after one year?- How much cash is available (before tax) from sale?
How much of the first mortgage payment was interest : The first payment was made on December 31, 2011. How much of the first mortgage payment was interest? Round your answer to the nearest dollar.
Discuss role that international human rights regimes played : In no more than two (2) pages and citing to materials we have covered this semester. discuss the role that international human rights regimes and international law have played (or not played) in the analysis employed by the courts in the Unites St..
Purpose of the declaration of helsinki : What is the purpose of the Declaration of Helsinki? Discuss considerations when balancing risks, burdens, and benefits of medical research. What is a goal of informed consent? Please contain a minimum of 2-3 peer-reviewed references.

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Ratio of the change in price

The price elasticity of demand is the: a) ratio of the change in price to the change in quantity demanded.

  Price of a good and quantity supplied

What is the term for a table that shows the relationship between price of a good and quantity supplied?

  Does the law of diminishing returns apply to h

Suppose the number of points on an economics midterm (P) can be characterized by the following procution function: P=5H-4B; where H is the number of hours spent studying for the exam and B is the number of beers consumed the week before the exam.

  Why is it an important application for business

Its importance in economics. What market structure does it best fit? As a manager, how might you use it to improve the bottom line? Why is it an important application for business?

  Software engineers happy at work

1. List and briefly explain three factors in Table 10.5 that make you, or would make you, happy at work. You may include factors that are important to you that are not listed in the table. TABLE 10.5 Factors that make software engineers happy at w..

  The interest-earning assets of a bank are

Changes in the reserve ratio, open market operations, and changes in the discount rate are all tools used by the Fed to

  The production of a new high performance suv

Which of the following expenditures associated with the production of a new high performance SUV will be included in GDP?a. the sale of bonds to finance the construction of the assembly plant.b. the purchase of used welding robots to assemble to vehi..

  Difference between the franchisor and the franchisee

Can you describe the difference between the franchisor and the franchisee? How are these differences strategically aligned to create a competitive advantage?

  Policies of the federal government

Federal government employs a budget plan over several fiscal years that results in significant increases in the national debt, with no relief or plans to deal with the problem.

  Computing canadian and south korean opportunity cost

Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.

  Present value analysis

Determine which of following independent projects should be selected for investment if $325,000 is available and the MARR is 10 percent per year

  Main differences between microeconomics and macroeconomics

Suppose you are asked to address a professional meeting and explain microeconomics, macroeconomics and their differences.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd